Heranba Inds Q1 FY27 Results (NSE: HERANBA)
Signal: Margin expansion
The read
The key inflection is consolidated EBITDA margin recovering to 14.3%, up 460bps YoY after 700bps and 500bps YoY contractions in Q1 and Q2FY26, but the recovery is not yet broad-based: consolidated revenue declined 15.3% YoY, standalone EBITDA fell 34.7%, and 29.1% of consolidated PBT came from other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹383.2 Cr | -15.3% | +19.9% |
| EBIT | ₹33.01 Cr | 45.6% | |
| Net profit | ₹7.14 Cr | 17.0% | |
| EPS | ₹1.78 | 16.3% | |
| EBIT margin | 14.3% |
P&L walk
Consolidated revenue was ₹383.20 crore, -15.3% YoY but +19.9% QoQ, while gross margin expanded to 39.9% from 29.9% YoY and EBITDA margin rose to 14.3% from approximately 9.7%; the improvement was driven by lower material and inventory-related costs, but ₹5.85 crore of other income represented 29.1% of PBT.
Segments
India remained the larger geography at ₹306.38 crore, -9.3% YoY, while outside-India revenue fell faster at ₹76.82 crore, -33.0% YoY; the consolidated EBITDA improvement therefore came despite export weakness and appears materially supported by subsidiaries, as standalone EBITDA fell 34.7% YoY while consolidated EBITDA rose 24.9%.
Key positives
- Consolidated EBITDA rose 24.9% YoY to ₹54.95 crore despite revenue declining 15.3% to ₹383.20 crore, with EBITDA margin expanding approximately 460bps to 14.3%.
- Gross margin expanded approximately 1,000bps YoY to 39.9% as raw-material consumption declined to 67.1% of revenue from 78.3%; the filing does not identify whether the benefit was from input costs, pricing or mix.
- Consolidated EBIT increased 45.6% YoY to ₹33.01 crore, while depreciation rose only 2.8% YoY to ₹21.94 crore.
- The Board approved up to ₹25 crore of additional investment in wholly owned subsidiary Mikusu India Private Limited through a rights issue, indicating continued support for the group platform.
Key concerns
- Revenue declined 15.3% YoY to ₹383.20 crore, with outside-India revenue down 33.0% to ₹76.82 crore and India revenue down 9.3% to ₹306.38 crore.
- Standalone EBITDA declined 34.7% YoY to ₹29.26 crore and standalone margin fell to 8.0%, showing that the consolidated margin recovery is concentrated outside the parent entity.
- Consolidated PAT of ₹7.14 crore included ₹5.85 crore of other income, equal to 29.1% of PBT; standalone PAT of ₹9.46 crore included ₹11.21 crore of other income, equal to 83.6% of PBT.
- Finance costs increased 11.8% YoY to ₹12.91 crore on a consolidated basis and 15.9% to ₹9.89 crore on a standalone basis despite lower YoY revenue.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.